European shares rally as Fed keeps rates unchanged

LONDON, Sept 22 (Reuters) - European shares climbed higher
in early trading on Thursday, mirroring gains on Wall Street and
Asia, after the U.S. Federal Reserve left interest rates
unchanged and projected a less aggressive path for hikes next
year and in 2018.

The Fed, however, strongly signaled it could still tighten
monetary policy by the end of this year as the labour market
improved further. Fed Chair Janet Yellen said U.S. growth was
looking stronger and rate increases would be needed to keep the
economy from overheating and fueling high inflation.

Miners led the European stock market higher as the Fed's
decision to keep rates unchanged pushed down the U.S dollar on
currency markets, thereby making commodities cheaper for holders
of other currencies.

The STOXX Europe 600 Basic Resources index rose more
than 3 percent to its highest level since the middle of August.
Shares in BHP Billiton, Anglo American, Rio
Tinto and Fresnillo were up 3.5 to 4.5 percent.

The pan-European STOXX 600 index rose for a second
straight session and was up 0.7 percent by 0707 GMT.
(Reporting by Atul Prakash; Editing by Sudip Kar-Gupta)